Canadian bank stocks face more downside on tariff impact, brokerage says
Canadian bank stocks could see another 9% to 16% downside if President Trump's tariff threats materialize and Canada's economy weakens, RBC Capital Markets says in a note
"Our observations indicate that banks with the largest exposures to economic uncertainties tend to be penalized by the market" - Brokerage
Adds median prices of large Canadian bank stocks have declined ~7% since Trump's February 1 tariff order on imports from Canada, but says valuations do not reflect a worst-case scenario
Bank | YTD performance | Market cap |
|---|---|---|
Royal Bank of Canada RY.TO | -6% | C$230.85 billion |
Toronto-Dominion Bank TD.TO | +11.5% | C$149.74 billion |
Bank of Montreal BMO.TO | -0.6% | C$101 billion |
Bank of Nova Scotia BNS.TO | -10.8% | C$85.78 billion |
Canadian Imperial Bank of Commerce CM.TO | -10.5% | C$76.71 billion |
National Bank of Canada NA.TO | -9.4% | C$46.55 billion |
Brokerage says CM and BNS with high loan exposure to Ontario and Mexico have been hit the hardest, while BMO and NA with lower risk premiums have held up better
Last month, top Canadian banks said they would wait for clarity on U.S. government tariffs before increasing rainy-day reserves and took a cautious stance as trade risks clouded the economic outlook
Related Articles
Silver Plunges 10%, Gold Tests $4,900: Is the Bull Market Over Ahead of CPI?
TradingKey - Ahead of the release of the U.S. January CPI report, financial markets experienced a sudden broad sell-off on Thursday. Alongside a sharp decline in U.S. equities, prices for commodities such as gold (XAUUSD) also plummeted. Gold dropped nearly $200 within a 30-minute window, a decline
Bitcoin Price Prediction 2029-2035: Institutional Accumulation and the U.S. Treasury’s Strategic Reserve Pivot
Explore the 2026 Bitcoin landscape: From the U.S. Strategic Reserve and Michael Saylor’s $75B war chest to Cathie Wood’s 2030 forecast. Is BTC the new Digital Gold?
This $1 Trillion AI Stock Is Getting Ready for 2026: Is Meta a Good Buy?
When ads and commerce are factored in, Meta is building a long-term platform—in Augmented Reality and smart glasses — to get us closer to the future of AI. This device hardware business is less profitable than ads right now, but it could grow the company’s ecosystem and open up new ways for it to ma
Is SaaS Dead? The Truth Behind the Software Meltdown, the Missing Floor, and the Peak That’s Not Coming Back
TradingKey - A trillion dollars just vanished from software stocks—this piece breaks down who AI is really killing, who quietly benefits, and why cheap SaaS may be the biggest value trap of this cycle.
